Contract Law

Contract Law

The place and importance of contracts in all legal relationships in every area of life is indisputable. As we always express to our clients, whether they are companies or individuals, RISK MANAGEMENT is as important as crisis management. The most fundamental step in risk management is to offer robust, high-quality, detailed contracts that have been carefully thought out in every detail, considering all possible risks and producing solutions.

What is Contract Law?

Contract law is the branch of law that governs the validity and enforceability of agreements between parties. Contracts play a vital role in daily life and commercial relations to safeguard the rights of the parties involved.

Types of Contracts

Contracts may be drawn up for different purposes and with varying scopes. Some of the most common types of contracts used in accordance with the Turkish Code of Obligations No. 6098 are as follows:

• Sales Contract: The seller is obliged to deliver the goods to the buyer in exchange for a specific price. The sales contract is the most common type of contract used in the sale of goods or services.
• Property Sale Agreement: This is the type of contract used in the sale of immovable property. The seller transfers ownership of the property to the buyer in exchange for a specific price.
• Joint Venture Agreement: Where the scale or technical characteristics of the planned commercial activity exceed the capabilities of a single person or organisation, cooperation becomes necessary in order to carry out the commercial activity. This is particularly the case for agreements in the infrastructure, energy, transport, and construction sectors. In practice, there are two main types of joint venture agreements: "Contract-Based Joint Ventures" and "Equity-Based Joint Ventures".
• Distribution Agreement: An agreement whereby a manufacturer transfers the sale of its goods in a specific region to another company.
• Consultancy Agreement: An agreement made between a consultancy firm providing consultancy services and a client for the provision of consultancy services on a specific subject. The parties agree on matters such as the duration, nature and fee for the work.
• Licence Agreement: This is an agreement signed in relation to the granting of rights to use certain technology, trademarks or patents by one party to another. The parties agree on matters such as the term of the licence, conditions of use and licence fee.
• Contract of Engagement: A contract of engagement is an agreement whereby one party undertakes to perform a specific task for the other party. The parties agree on matters such as the duration, nature and remuneration of the task.
• Franchising Agreement: A franchising agreement defines the rights and obligations of the licensor and the licensee. This agreement protects the licensor's rights regarding the brand, business model, products, and services, while allowing the licensee to exercise these rights.
• Deposit Agreement: A deposit agreement is a contract signed regarding the temporary deposit of goods. The parties agree on matters such as the nature and quantity of the goods deposited, the deposit period and the conditions.
• Surety Agreement: A surety agreement means that if one person fails to fulfil their debt obligation, another person will assume this debt.
• Employment Contracts: These define the rights of employees and employers.
• Tenancy Agreements: They safeguard the rights of both tenants and landlords.
• Supply and Service Contracts: Govern the exchange of goods or services between the parties.
• Partnership Agreements: These define the responsibilities and obligations in business partnerships.

Conditions of Validity of the Contract

For a contract to be valid:

• The parties being competent,
• Freely given consent,
• The subject matter and purpose of the contract must be lawful.

Incomplete or incorrect arrangements may lead to legal disputes in the future. For this reason, a contract law solicitor meticulously checks each clause.

The Role of the Contract Lawyer

A contract law solicitor provides advice on the drafting, review, negotiation and resolution of potential disputes in contracts. The correct contract structure for businesses minimises legal risks and prevents disputes.

Dispute Resolution and Arbitration

Contract disputes are resolved through court or arbitration proceedings. Contracts prepared in accordance with the law increase trust between the parties and ensure that disputes are resolved quickly.